The United Kingdom’s Competition and Markets Authority (CMA) is actively addressing what it terms an “effective duopoly” held by Apple and Google over mobile app platforms. The regulator has proposed measures that would permit app developers to guide users towards alternative payment methods outside of the traditional app stores. This initiative aims to foster greater competition by allowing developers to offer consumers potentially cheaper or varied purchasing avenues, countering the significant commissions of up to 30% that Apple and Google currently impose on some in-app transactions.
By facilitating “steering,” the CMA believes developers could gain more autonomy and ignite increased competition within the mobile app market. This market is predominantly controlled by Apple and Google, who provide the primary platforms for the majority of smartphone users in the UK. Companies like Spotify have already circumvented app store fees by directing customers to their own websites, demonstrating a potential model for other developers. The CMA argues that dismantling these barriers could widen the spectrum of choices available to both businesses and consumers.
In addition to payment options, the regulator is evaluating whether Apple should offer more extensive access to its near-field communication (NFC) technology. Such a move could empower developers to create alternative contactless payment solutions for iPhone users. However, Apple has voiced concerns that these proposed changes might compromise user protection, impacting security features, privacy controls, and safeguards against scams.
Google, on the other hand, has highlighted that it has already implemented some modifications that enable developers to direct users to external payment options. The CMA’s current actions come in the wake of its decision to bestow Apple and Google with strategic market status, a classification that grants the regulator enhanced authority to enforce specific regulations on the business operations of these tech giants.